The BMW X7 finally arrived in 2018, marking BMW’s entry into the full-size luxury SUV segment. This long-awaited model was seen as a direct competitor to the Mercedes-Benz GL-Class (later renamed GLS-Class), which had dominated the market since its 2006 debut. This 12-year gap between the GL’s launch and the X7’s release raises questions about BMW’s strategy.
Timing the Market: The 2018 BMW X7 Launch
While the delay might seem significant, BMW likely timed the X7’s release strategically. The 2008 global recession significantly impacted the automotive market. Launching a high-end SUV during that period could have been risky. By 2018, the economy had recovered, and the demand for luxury SUVs was booming. Furthermore, BMW positioned the X7 to cover a broad range within the luxury segment. It offered a “second” luxury-oriented version with four (or optional five) seats, along with powerful V8 and V12 engine options. This directly targeted vehicles like the Range Rover LWB Autobiography Black and the Bentley Bentayga, but with a more competitive price point between $165,000 and $250,000.
BMW’s Luxury Strategy and the X7
The X7’s introduction also highlighted a crucial question for BMW: how to approach the ultra-luxury market. Could the BMW brand compete directly with Bentley? Would a model priced below the Rolls-Royce Ghost damage the prestigious marque? BMW’s successful revitalization of Rolls-Royce demonstrated its capability to elevate a luxury brand. The “Black Badge” marketing campaign further showcased BMW’s innovative approach to targeting a specific demographic. However, questions remained about whether a BMW-badged vehicle could command prices comparable to ultra-luxury competitors.
Other luxury automakers had faced challenges in this segment. Aston Martin thrived with the Vantage and DB9 but faltered with the Rapide. Maserati found limited success outside of the Ghibli. Mercedes-AMG achieved strong performance with its 63 models, but its 65 models often resulted in financial losses. The limited production of the Mercedes-Maybach S600 and the questionable success of the Maybach Manufaktur models further illustrated the complexities of this market.
The 2018 BMW X7 ultimately filled a crucial gap in BMW’s lineup, providing a compelling alternative in the full-size luxury SUV market. While its late arrival sparked discussion, BMW’s strategic timing and comprehensive approach with the X7 positioned it for success in a highly competitive landscape.
